In line with the agreed fiscal and economic strategy Guernsey is
reviewing its corporate tax regime.
The Island's current 'zero-10' corporate tax regime
was introduced on 1 January 2008. In subsequent discussions,
officials from the UK Treasury confirmed that it was compliant with
international standards and the EU Code of Conduct.
Jersey and the Isle of Man followed a broadly similar
However, all three Crown Dependencies recognise that the recent
and unprecedented changes in the world economy have led to shifts
in perceptions and attitudes across the globe.
At meetings held on Tuesday between the Crown Dependencies and
Rt. Hon. Stephen Timms MP, Financial Secretary to the Treasury, it
became apparent that these changes in attitudes mean that other EU
Member States are now unlikely to accept the stance of the UK that
our fiscal regimes are code compliant.
Guernsey's Chief Minister, Lyndon Trott, said: "Our
'zero-10' strategy was always intended to be a multi-stage
process, in order to ensure that our tax revenues are sufficiently
sustainable in the light of changing economic uncertainties.
"As a result of the changes in international attitudes, the
terms of consultation on this issue will be broader than had
previously been envisaged, and will aim, working with the UK and
other EU Member States, to ensure that our fiscal regime remains
competitive and within international standards."
It has been agreed that all the Crown Dependencies will address
these issues, working together and sharing resources. In
particular, due to their geographic and political similarities
Guernsey and Jersey will be working closely together on the
political aspects of the consultation.
The review in Guernsey will be carried out through a Fiscal and
Economic Policy Group, chaired by the Chief Minister. Technical
work will be led by the Treasury and Resources Department.
Guernsey's Treasury and Resources Minister, Charles
Parkinson, said: "Guernsey has been committed to reviewing its
fiscal strategy after the first phase of 'zero-10'. I am
pleased that we will now be undertaking this review alongside our
colleagues from Jersey, with the intention that there should be no
significant differences between the corporate tax regimes of the
Peter Niven, Chief Executive of Guernsey Finance – the
promotional agency for the island's finance industry, added:
"The Guernsey government is reviewing this strategy in
conjunction with the other Crown Dependencies with a view to
delivering corporate tax regimes broadly similar to each other that
remain competitive, yet also within international standards.
"We are acutely aware that businesses and their clients
require certainty and are reassured that the government have
indicated that they intend to move as speedily as possible to agree
a corporate tax regime that is sustainable for the future. Early
indications from our financial services and business community
appear to support the approach outlined by the government and we
look forward to seeing progress in the coming weeks and
Guernsey features alongside the United Kingdom and United States
on the OECD 'white list' published at the conclusion of the
G20 summit in London, April 2009.
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